NTG Clarity Letter to Shareholders: 2025 Wrap-Up

Rhea-AI Summary

NTG Clarity (OTC Pink: NYWKF) provided a 2025 shareholder letter summarizing commercial progress and shareholder‑awareness steps. Key metrics: ~150% net revenue retention, +50% revenue YoY through the first nine months of 2025, and a net 7% increase in clients. Management expects positive operating cash flow in Q4 2025 after improved collections and cites proceeds from an August 2025 equity raise to fund growth. NTG flagged an ongoing audit and plans selective investments and regional expansion (Iraq, UAE, Madinah). The company engaged Atrium Research for 12 months at $6,000 per quarter to publish sponsored research starting Jan 15, 2026.

Positive

• Revenue +50% year-over-year through first nine months of 2025
• Net revenue retention approximately 150% over trailing 12 months
• Client base net increase of 7% in 2025
• August 2025 equity raise provided growth funding

Negative

• Audit ongoing, limiting disclosure and creating near-term uncertainty
• Need to accelerate cash conversion to support operations
• NTGapps revenue growth remains largely implementation fees, not recurring

News Market Reaction

-0.22%

1 alert

-0.22% News Effect

On the day this news was published, NYWKF declined 0.22%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Toronto, Ontario--(Newsfile Corp. - January 15, 2026) - NTG Clarity Networks Inc. (TSXV: NCI) (OTC Pink: NYWKF); NTG Clarity ("NTG") is pleased to share the following letter with shareholders and give an update to our shareholder awareness strategy.

Dear Shareholders,

The past two years represent a meaningful inflection point in NTG Clarity's evolution. In 2024, the investments outlined in our prior shareholder letter began to generate measurable returns, validating both our long-term strategy and the disciplined actions taken to strengthen the foundation of the business.

Against this backdrop, 2025 marked a deliberate step forward. We scaled into larger contracts, demonstrating our capabilities with some of Saudi Arabia's most prominent public companies and government affiliated organizations. Operating from a position of strength, we reinvested to drive the next phase of growth while remaining anchored to a clear set of strategic priorities.

2025 Strategic Priorities and Progress:

1. Deepening our role in clients' long-term digital strategies: We continue to expand and solidify our position as a critical partner to our clients. Net revenue Retention over the past twelve months reached approximately 150%¹ with only one customer churned², underscoring the effectiveness of our strategy. We land new clients through targeted initial engagements, prove value quickly and expand relationships becoming a core piece of clients' long-term digital strategies.

2. Driving new customer acquisition through network effects: Strong delivery for existing clients is directly fueling new customer acquisition. In 2025, we achieved a net 7% increase in total clients. Our execution across multiple large engagements is generating a focused, referral-driven pipeline comprised of high-value opportunities, positioning us well for continued growth.

3. Increased adoption and traction of NTGapps: We saw meaningful growth in NTGapps revenue during the year. While a significant portion of this growth remains tied to implementation fees, the long-term opportunity is clear: NTGapps represents a scalable source of recurring, higher-margin revenue with strong customer stickiness.

Execution against these strategic priorities delivered over 50% year-over-year revenue growth through the first nine months of 2025, including several record-breaking quarters. Importantly, this growth was driven by strong demand and disciplined execution while maintaining profitability.

As we look toward 2026, we recognize important areas for continued improvement, particularly accelerating cash conversion and maintaining disciplined margin management as we scale. Our objective remains to ensure that investments in talent, technology, and expansion are tightly aligned with strategic priorities and supported by a sound economic foundation.

While we are limited in what we can share with the audit ongoing, we are already making progress on these fronts. A strong fourth quarter for collections is expected to result in positive operating cash flow in Q4, driven by improved coordination between finance operations and the account managers who lead client relationships. This improved cash flow, together with the proceeds from our August 2025 equity raise, enables management to focus on the business and positions us well to finance the next phase of growth.

In 2026, we remain focused on disciplined execution of our growth strategy. We are advancing discussions for expanded engagements with existing clients and new engagements with new customers, targeting to improve utilization of reserve staff resources and supporting continued progress toward further profitability.

This strategy is supported by the 2026 Saudi budget, which continues to align fiscal priorities with Vision 2030's economic diversification objectives. Significant funding is directed toward technology and innovation, including digital government services, AI-enabled platforms, cloud infrastructure, and broader ecosystem development, reinforcing technology's role as a core driver of long-term economic growth.

We are investing selectively to support growth and expand our capabilities and geographic footprint, including establishing offices and/or legal entities in Iraq, the UAE, and Madinah, Saudi Arabia. These initiatives are designed to capture attractive new market opportunities while maintaining organizational efficiency and scalability. We believe this disciplined, growth-oriented approach positions NTG Clarity to continue delivering long-term value for shareholders.

We'd like to take the opportunity to thank you for taking part in our growth journey, and we look forward to another successful year.

Sincerely,
Adam Zaghloul
Vice President, Strategy & Planning
NTG Clarity Networks Inc.
adam@ntgclarity.com

Continued Shareholder Awareness

NTG Clarity has engaged the services of Atrium Research Corporation ("Atrium"), a leading company sponsored research firm. Atrium will publish various research reports on NTG Clarity Networks Inc. based on based on publicly available information, industry data, and discussions with management. Atrium will also host two recorded interviews with NTG's management team to present the investment case in an interview format. In exchange for its research services, Atrium will receive cash compensation in the amount of $6,000 per quarter for the services listed above. The services will be provided for 12 months beginning on January 15, 2026. At the end of the Term, the agreement will be deemed to remain in place and be extended on a quarter-to-quarter basis, unless otherwise agreed to by the parties or the agreement is terminated by either party. This engagement is subject to TSXV approval.

Atrium and the Company are arm's-length parties, and neither Atrium nor its insiders holds any shares or options to purchase shares in the issued and outstanding capital of the Company.

About NTG Clarity Networks Inc.

NTG Clarity Networks' vision is to be a global leader in digital transformation solutions. As a Canadian company established in 1992, NTG Clarity has delivered software, networking, and IT solutions to large enterprises including financial institutions and network service providers. More than 1,300 IT and network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading enterprises.

Forward-Looking Information

Certain statements in this release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature.

These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

For Further Information:
Adam Zaghloul, Vice President, Strategy & Planning
NTG Clarity Networks Inc.
Ph: 905-305-1325
Fax: 905-752-0469
Email: adam@ntgclarity.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

---

¹ Calculated as LTM Q3 2025 revenue from customers who had revenue in LTM Q3 2024, divided by their LTM Q3 2024 revenue.
² Customer defined as accounts spending more than $100,000 in a year.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280443

FAQ

What key financial results did NTG Clarity (NYWKF) report for 2025?

NTG reported ~50% revenue growth year-over-year through the first nine months of 2025 and ~150% net revenue retention over the trailing 12 months.

When does NTG Clarity expect to reach positive operating cash flow for 2025?

Management expects positive operating cash flow in Q4 2025, driven by improved collections and coordination between finance and account managers.

How is NTG Clarity funding its 2026 growth plans (NYWKF)?

Growth is financed by proceeds from an August 2025 equity raise plus operating cash flow improvements.

What is the scope and cost of the Atrium research engagement for NTG Clarity?

Atrium will publish research and two recorded interviews for $6,000 per quarter over a 12-month term starting Jan 15, 2026, subject to TSXV approval.

What operational risks did NTG Clarity highlight for 2026 (NYWKF)?

The company cited the need to accelerate cash conversion and maintain disciplined margin management as it scales.